Agenda - 06-24-2008-4h - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 24, 2008 Action Agenda Item No. SUBJECT: Actuarial Report for Other Post Employment Benefits DEPARTMENT: Finance/ Human Resources PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Gary Humphreys, -245-2453 PURPOSE: To agree to participate in the North Carolina Association of County Commissioners contract with Cavanaugh McDonald for preparation of the actuarial report for the County's Other Post Employment Benefits (OPEB) liability for the benefit year ended December 31, 2007. BACKGROUND: An Actuarial Report is required to be prepared every two years regarding the County's Other Post Employment Benefits (OPEB) liability. Under the Governmental Accounting Standards Board (GASB) Pronouncement 45, the County is required to report the liability of any retiree benefits it provides in its Comprehensive Annual Financial Report (CAFR). The County provides health insurance benefits to its retirees. Based on the previous valuation completed as of December 31, 2005, the County's OPEB liability was $84.5 million which is what will be reported in the County's FY 2007-08 CAFR. The North Carolina Association of County Commissioners has arranged a contract with the firm of Cavanaugh McDonald for the preparation of this report for counties. The cost is based on a sliding scale related to the number of plan participants. It is estimated that the cost will not exceed $5,600. FINANCIAL IMPACT: The financial impact is $5,600. Funds are budgeted in the FY2008-09 budget for the preparation of this report. RECOMMENDATION(S): The Manager recommends that the Board approve participating in the North Carolina Association of County Commissioners' contract for the preparation of County's actuarial report for its OPEB liability and execution of the participation agreement by the County Manager.